Globalfoundries Inc (NASDAQ:GFS) stock fell 3.25% (As on November 13, 12:24:32 AM UTC-4, Source: Google Finance) after the company forecast fourth-quarter profit and revenue above Wall Street estimates, driven by strong demand from its clients in the automotive and data center markets. The company has seen higher demand for its made-to-order chips, as automakers focus on electric vehicles and advanced driver-assistance systems and as tech companies look to upgrade data center capacity to run their artificial intelligence models. Automotive clients account for about 16% of the company’s annual revenue on average, while communications, infrastructure and data center customers account for about 10.5%. Its biggest segment is smartphones, representing over 40% of revenue. In recent weeks, the company has signed a technology licensing deal with larger peer TSMC and announced a 1.1 billion euros expansion of its facility in Germany, backed partly by the German government. Ending cash, cash equivalents and marketable securities was of $4.2 billion. Net cash provided by operating activities of $595 million and Non-IFRS adjusted free cash flow of $451 million.

Moreover, in August, GF announced the production release of its Complementary Bi-CMOS (CBIC) platform, the company’s high-performance silicon germanium (SiGe) technology capable of serving several key markets including smartphones, wireless infrastructure, optical networking, satellite communications and industrial IoT. A major milestone in GF’s SiGe roadmap, CBIC combines industry-leading transistor performance with a low-mask count process, and sets a new benchmark for markets that need high-speed, energy-efficient connectivity. In October, Silicon Labs and GlobalFoundries announced an expanded partnership for GF to manufacture wireless system-on-chips (SoCs) on its new 40nm Ultra Low Power platform out of its fab in Malta, New York. Building upon its existing manufacturing capabilities in Singapore and Germany, this strategic partnership will drive innovation and reinforce important semiconductor supply in the U.S.

GFS in the third quarter of FY25 has reported the adjusted earnings per share of 41 cents, beating the analysts’ estimates for the adjusted earnings per share of 38 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 3 percent to $1.69 billion in the third quarter of FY25, beating the analysts’ estimates for revenue by 0.75%.

For the fourth quarter, GlobalFoundries expects adjusted earnings of 47 cents per share, plus or minus 5 cents, compared with analysts’ estimate of 46 cents per share, according to data compiled by LSEG. It expects revenue of $1.80 billion, plus or minus 25 million, a touch above estimates of $1.79 billion.